Economies of diversification in microfinance: Evidence from quantile estimation on panel data

Emir Malikov (), Valentina Hartarska and Roy Mersland ()
Additional contact information
Roy Mersland: UIA - University of Agder

Post-Print from HAL

Abstract: Prior studies of the diversification-driven cost savings from the joint provision of credit and deposits in microfinance usually ignore the multi-way heterogeneity across MFIs which vary substantially in size, business model, target clientele and operate in diverse environments. Using a quantile panel data model with correlated effects capable of accommodating multiple heterogeneity, we show that the typical measurement of economies of diversification at the mean provides an incomplete and distorted picture of their magnitude and prevalence in the industry. While we find statistically significant estimates, they are modest for most small-size MFIs but are quite substantial for large-scale institutions.

Keywords: cost diversification microfinance institutions quantile regression JEL Classification: G15 G21 O16 L33; cost; diversification; microfinance institutions; quantile regression JEL Classification: G15; G21; O16; L33 (search for similar items in EconPapers)
Date: 2020
Note: View the original document on HAL open archive server: https://hal.science/hal-05221030v1
References: Add references at CitEc
Citations:

Published in Finance Research Letters, 2020, 34, pp.101246. ⟨10.1016/j.frl.2019.07.019⟩

Downloads: (external link)
https://hal.science/hal-05221030v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05221030

DOI: 10.1016/j.frl.2019.07.019

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().